Obviously benefits the charity uses donated car for transport or to transport goods directly from this donation. However, in many cases donated cars be sold collectively, the charity itself or a dealer to raise money for charity. If the dealer receives charity generally a flat fee per car, and sometimes less than $ 45 per car.
The following tips for donors who want to donate a car to charity. Beware that the tax cuts for donors to donate a car may be limited to the price at which the charity sold the car.
Receive maximum tax give discounts for donating your car, and get the satisfaction that the full value of the car serves a charitable purpose vehicle will be used by the charity in its operations or give to someone in need. Otherwise, your tax deduction will not be based on fair market value, but will be limited to the amount of money charities receive from selling your car. If the charity is donating to sell the car, ask their percentage of revenue. See car donations: taking taxpayers ride for more information.
Ask if the charity accept donations drive directly, without the involvement of a third party. If possible, drive the car to charity instead of using the towing service or pickup. This will allow the charity to keep the full amount of any proceeds from selling the car.
Make sure that the charity is eligible to receive tax deductible contributions. Ask for a copy of your records to the IRS organization design message that checks by tax exempt status.
Make sure to get a receipt from the charity to donate your car.
Be aware that non-monetary contributions of one of the most common triggers for review by the IRS, so you'll want to document the value of the vehicle and keep records.
If the car is worth more than $ 500, you must complete section a of IRS form 8283 and attach it to the donor's tax return. Donors are required to file a tax return with a written acknowledgement from the charity. If the charity sells the car, the charity must provide the donor with a car is sold "at length" between unrelated parties, and the sale price of the car within 30 days. In this case, would be limited to the total amount the charity sells the car for tax deductions for donors. If the charity does not sell the car, it must provide donors with receipt within 30 days. The charity is also required to provide the certificates to the donor outlining how they plan to use or improve the car and it promises not to sell or move the car. And impose penalties on charities that provide fraudulent acknowledgements to donors.
If the car is worth $ 5000 or more, it is necessary to make an independent assessment. You must fill out the donor also by IRS form 8283 section. Cars, and worth less than $ 5000 to use Kelly Blue book, Hearst black book, a directory of National Automobile Dealers Association (NADA) to determine market value. Be sure to use the correct date and number, mileage, and condition of your car. Picking the highest number of car your model and year without taking into account other factors that might not pass muster with the IRS.
Take pictures of the car and save receipts for new tires or other upgrades to verify its value.
Remember, it is the donor, not charity, which is bound to the value of the vehicle and who will pay the penalties if the IRS challenge finds your figure inaccurate.
Tidak ada komentar:
Posting Komentar